If you’re having trouble choosing a broker I suggest you check out my list of questions I suggest you ask yourself before you sit down to read reviews. You can find it on our hub page.

Next, you should know that most brokers available to you are offshore. This means they’re not licensed or regulated in the states. It also means there are no clear rules for them to follow, nor do they have permission to be operating here.

That means that:

They may not keep your funds segregated. They may not even have funds outside of customer deposits.

They can run off with your money and never be seen again.

They don’t have to keep x amount of dollars, resources or people on-hand to run their business.

At least one native resident.

Maintain up to date records/financials.

Or anything else you’ll find other regulatory commissions demand of their licensees.

I don’t point these things out to scare you, but to make you aware. There are risks when you take part in activities the US Government has yet to create laws for …or ….when outside companies choose to make their own laws.

But don’t let this stop you from joining one of our recommended brokers above. Just understand what you’re getting yourself into.

And more.

Our goal is to help you get started on the right foot. That can be hard to do in a market that has yet to establish any rules or guidelines for binary options brokers. We hope to shed some light on the subject. Sound good? Alright, let’s get started.

Nadex – One of the only regulated exchanges

But what if you want a legal option?

The next step would be to check out Nadex – a binary options exchange.

The key difference between these guys and a broker is this (according to FinanceMagnates.com):

The main difference between Nadex (North American Derivatives Exchange) and the plethora of unregulated offshore companies which are offering binary options trading, is that the trades on Nadex are executed on an exchange at a price that the client sets.

The company is not taking the other side of the trade and is delivering the most transparent product available on the binary options market today. As an exchange, Nadex doesn’t have any interest in who the profitable party in a trade is, hence there is no conflict of interest between the client and the company.

They’re also US-based and hold their customers’ funds in separate US banks. And they’re subject to regulatory oversight from the Commodity Futures Trading Commission (CFTC) – an outfit that protects the American public from fraud.

They also have capped fees per order – unlike many offshore brokers – which means more transparency and less bias.

They’ve received great reviews so far and are likely what the future will look like here in the United States.

Beware of Reviews: Not Every Broker is Legit

The last thing I want to cover is finding a legit and US-friendly broker.

The challenge we Americans face is twofold – few brokers are licensed and regulated, and most review sites that show up on the first page of Google are biased. They’ll tout anything that earns them a commission.

So how can you be sure a broker is as good as everyone says it is?

I go about this a couple different ways.

==> Visit forums. Some forums are biased, sure. But what I’ve found is most feedback, complaints and compliments are genuine. And they’re coming from traders like you with experience in the trenches.

==> Reviews sites. The difference here is I find sites that state both the good and bad things about a broker. You can tell they’re trying to be objective. These are reviews worth reading.

You can easily tell if a forum or review site is biased if they delete bad comments or posts, or if every review on their site says the same things.

I also recommend ignoring feedback where the user whines about how much money they lost or how a salesman sold them on a bonus or upgraded account (which is their job, by the way).

The posts you should pay attention to are the ones that call out a broker for being a scam …and …they have legit proof. Also pay attention to similar complaints coming from different posters.

And, last, pay attention to things like brokers changing terms and conditions on the fly, giving players bonuses without telling them or not fulfilling cash out requests. These should be warning flags – don’t join this broker unless you’re okay with being stolen from.

Follow these guidelines and stick to our picks above, and you should have no problem finding a legit, US-friendly, binary options broker.

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